Carbon Passport will only sell the highest quality offsets. At present, we only sell Certified Emission Reductions (CERs) which have passed the scrutiny of the United Nations’ Clean Development Mechanism and which DEFRA propose will be approved under their proposed Code of Best Practice.
At the international level, countries that have ratified the Kyoto Treaty are required to make reductions in their greenhouse gas emissions. As part of its commitment to meeting Kyoto targets, the UK (via the EU) has created carbon emission caps for its most energy intensive businesses – this is known as the compliance sector. The performance of these businesses relative to their caps and the offsets that they purchase to meet their caps is monitored and regulated by DEFRA. By contrast, offsetting in the voluntary sector (i.e. everyone other than those businesses in the compliance sector) is not regulated. However, as a result of consumer concerns, DEFRA launched a public consultation into the voluntary offset market and intends to publish a voluntary offsets code of best practice by the end of 2007. The purpose of this code of best practice is to improve consumer confidence. Carbon Passport welcomes the introduction of such a code of best practice and intends to comply with it in full.
What are VERs?
VER stands for Verified Emission Reductions, which refers to the market for carbon credits outside the Kyoto Protocol compliance regime.
In principle VERs are similar to CERs in that they purport to represent carbon reduction from projects which can then be bought and used as offsets. VERs are usually derived from smaller scale projects which, it is argued, would find it uneconomic to meet the costs associated with the CDM processes. Unfortunately, this generally means that VERs are subject to much less rigorous independent checking processes than emission credits in the regulated sector ( such as CERs). This leads to criticism that CO2 reductions are overstated or would have occurred in any case.
Carbon Passport does not currently supply VERs as we remain to be convinced that the processes are in place to satisfy the key criteria of additionality, uniqueness and verifiability. Also, VERs may not satisfy the requirements of DEFRA’s proposed code of conduct on offsetting although this is still to be finalized.
Some good independent quality standards are under development which, if combined with a registry of credits (to avoid double counting) could make qualifying VERs a quality source of offsets. At present, however, most VERs on the market would fail to meet these standards. Most existing offsetting firms offer VERs only. Until we are confident that VERs offer real verifiable and additional reductions in carbon emissions, Carbon Passport will not sell them.
What are CERS?
CERs (Certified Emission Reductions) are carbon credits generated by CDM projects which have completed the registration process. Each CER represents the reduction of one tonne of carbon dioxide equivalent, and CERs are only issued by the CDM Executive Board once estimated abatement volumes have been independently validated, and a stringent verification process is in place for ongoing monitoring.
CERs have unique reference numbers and, when traded, are logged on an electronic registry to track their sales and prevent double counting of credits.
A few VERs are derived from CDM projects, generally for the period before the project is registered by the CDM executive board. This does not necessarily make them more robust than other VERs. Currently there is no international registry to prevent double selling of such VERs and there is no guarantee that the pre-registration VERs are truly additional (the VERs would be deemed additional only if the project would not have happened without this additional revenue stream).
How do I offset my carbon emissions?
You can offset some or all of your carbon emissions on this website. Use our calculators to work out your carbon emissions from driving, flying and electricity/gas consumption and then purchase the required volume of offsets online using your credit or debit card. Businesses can use our business calculator or contact us for assistance in determining their carbon footprint and purchasing offsets.
Is Carbon Passport a charity organisation?
Carbon Passport is a limited company with shareholders. We believe that climate change is biggest single issue facing our planet today, and as such is best tackled in the business world. Adopting the business rather than charity approach will lead to competition among businesses to deliver climate change solutions efficiently.
Why are there such large variations in the price of carbon offsets?
This can be for a number of reasons. Offsets from mechanisms that are approved as part of the Kyoto Protocol (CERs, EUAs/AAUs, ERUs) are traded internationally and have a high market value compared with VERs that do not comply with the Kyoto Protocol. VERs have been developed to differing standards and accreditation processes and there is no single, internationally traded price for such offsets. They are also generally subject to less stringent audit and verification processes and may not meet the additionality principle (whereby offset projects are deemed additional if they would not have happened without the additional income that comes from the sale of offsets) and so can sell their offsets at reduced prices. Of course this does not mean that they are a lower cost means of offsetting as they may not truly be offsetting the amount of carbon claimed. Carbon Passport could sell such VERs at a lower price than our CER product but our core principle is that we will only sell offsets which offer real verifiable and additional reductions in carbon emissions.